Published: Friday, November 16, 2012 at 5:41 p.m.

Last Modified: Friday, November 16, 2012 at 5:41 p.m.

Investors who lost money in the Arthur Nadel Ponzi scheme will have some extra cash to spend this holiday season.

A federal judge on Friday authorized the Nadel receivership to distribute another $22 million to about 340 investors who were bilked in the Sarasota-based scam.

Combined with the $26 million that was paid out in May, Nadel's victims have now recovered nearly 37 percent of what they lost after the scheme collapsed in January 2009.

“We are working to send checks next week,” said Gianluca Morello, an attorney for receiver Burt Wiand.

Most of the latest money comes from high-profile law firm Holland & Knight, which agreed in August to pay $25 million to settle a lawsuit accusing it of failing to report illegal activities at the Scoop Management hedge funds operated by Nadel in downtown Sarasota.

The receivership received $18.2 million from the settlement, and Tampa law firm Johnson Pope Bokor Ruppel and Burns took $6.3 million, plus costs, for handling the case on a contingency basis.

Holland & Knight paid the money last week, Morello said.

U.S. District Judge Richard Lazzara called the latest distribution “fair and reasonable” and consistent with the plan he previously approved.

The receivership will hold about $11 million after the payouts, with another $3 million owed from other settled litigation. Wiand has several other potentially sizable lawsuits pending, including one against giant Wells Fargo Bank that alleges the bank allowed Nadel to set up shadow bank accounts to operate his scheme.

Nadel, dubbed a “mini-Madoff,” died in April at age 79 while serving a 14-year prison sentence in North Carolina.

He and partners Neil and Christopher Moody had told investors their six hedge funds were worth $350 million, but in fact held only about $500,000 in what prosecutors called a classic Ponzi scheme.

<p>Investors who lost money in the Arthur Nadel Ponzi scheme will have some extra cash to spend this holiday season.</p><p>A federal judge on Friday authorized the Nadel receivership to distribute another $22 million to about 340 investors who were bilked in the Sarasota-based scam.</p><p>Combined with the $26 million that was paid out in May, Nadel's victims have now recovered nearly 37 percent of what they lost after the scheme collapsed in January 2009.</p><p>“We are working to send checks next week,” said Gianluca Morello, an attorney for receiver Burt Wiand.</p><p>Most of the latest money comes from high-profile law firm Holland & Knight, which agreed in August to pay $25 million to settle a lawsuit accusing it of failing to report illegal activities at the Scoop Management hedge funds operated by Nadel in downtown Sarasota.</p><p>The receivership received $18.2 million from the settlement, and Tampa law firm Johnson Pope Bokor Ruppel and Burns took $6.3 million, plus costs, for handling the case on a contingency basis.</p><p>Holland & Knight paid the money last week, Morello said.</p><p>U.S. District Judge Richard Lazzara called the latest distribution “fair and reasonable” and consistent with the plan he previously approved.</p><p>The receivership will hold about $11 million after the payouts, with another $3 million owed from other settled litigation. Wiand has several other potentially sizable lawsuits pending, including one against giant Wells Fargo Bank that alleges the bank allowed Nadel to set up shadow bank accounts to operate his scheme.</p><p>Nadel, dubbed a “mini-Madoff,” died in April at age 79 while serving a 14-year prison sentence in North Carolina.</p><p>He and partners Neil and Christopher Moody had told investors their six hedge funds were worth $350 million, but in fact held only about $500,000 in what prosecutors called a classic Ponzi scheme.</p>